Over 20,000 UK Estate Agency Branches Register for Money Laundering Supervision, Analysis Reveals
More than 20,000 estate agency branches in the UK have registered with HMRC for money laundering supervision, according to analysis from risk management platform Thirdfort. The data reveals that there has been an increase of around 3,000 branches in just 18 months, bringing the total number of registered branches to 20,059.
The analysis from Thirdfort, which combines Know Your Client (KYC), Anti Money Laundering (AML), and Source of Funds (SoF) verification, shows a significant rise in registrations compared to the figure of 16,730 reported in December 2021.
Despite this increase, approximately 4,000 branches still need to register or complete their renewal with HMRC. It’s worth noting that some of these branches may be in the process of renewing their registration and are therefore not yet recorded in HMRC’s online figures, which only captures approved branches.
However, when compared to the total number of estate agents in the UK, estimated to be 24,500 according to the Office of National Statistics, the current number of unregistered or yet-to-renew branches amounts to around 18%. This represents an improvement from December 2021 when 25% of agents had yet to register.
Olly Thornton-Berry, co-founder and Managing Director of Thirdfort, emphasized the seriousness of money laundering in the property sector, which costs the UK over £100 billion annually. He highlighted the increased oversight from HMRC and other regulators and encouraged all estate agents to register for money laundering supervision to avoid fines, reputational damage, or even a ban. Thornton-Berry also stressed the importance of using tools like Thirdfort’s platform, which streamlines the AML verification process and turns compliance into a competitive advantage.
Thirdfort’s web and mobile app utilizes AI, biometric verification, and Open Banking to automate KYC, AML, and Source of Funds verification. By leveraging these technologies, they have transformed a previously time-consuming process that took weeks into one that now only takes minutes.
The company has successfully verified over 1 million individuals on behalf of more than 1,000 conveyancers, lawyers, estate agents, and other regulated professional service firms. This accounts for approximately 2.5% of all adult smartphone users in the UK.
The increase in estate agency branches registering for money laundering supervision reflects a growing recognition of the risks associated with this criminal activity in the property sector. It is a positive step toward safeguarding the industry and protecting the UK’s financial interests. However, there is still progress to be made as approximately 4,000 branches remain unregistered or in need of renewal. Estate agents must prioritize compliance with money laundering regulations to maintain the integrity of the sector and avoid potential penalties.
